U.S. government debt prices were lower Friday morning, but investors were still cautious about the economy.
At around 2:47 am ET, the yield on the benchmark 10-year Treasury note was moving higher at around 0.6854% and the yield on the 30-year Treasury bond was also trading higher at 1.4296%. Bond yields move inversely to prices.
This comes after significant drops in U.S. bond yields on Thursday. The yield on the 10-year paper plunged to its lowest level since June 3 to 0.65% and the return on the 30-year money dropped 10 basis points to 1.40%.
The bond market reacted after a sell-off in equities. Investors were concerned about a potential second wave in contagion from Covid-19. In addition, the Federal Reserve said earlier this week the U.S. economy is likely to contract 6.5% this year — a more severe downturn than what many were forecasting before.
On the data front, import prices and consumer sentiment figures will be released at 8:30 a.m. ET and 10 a.m. ET, respectively.
Furthermore, the Federal Reserve is due to submit its latest monetary policy report to Congress at 11 a.m. ET.
There are no Treasury auctions planned.